Legal Question in Real Estate Law in Colorado
non-owner as co-borrower
My income alone is not enough to qualify refinancing my mortgage, although, our combined household income will qualify. I am property owner. He has most of the income. Does he have to be listed as owner if he is co-borrower?
2 Answers from Attorneys
Re: non-owner as co-borrower
From strictly a legal point of view, the answer is "no"; a person can sign a note as a co-maker or sign a separate guaranty agreement without being in title to the collateral. However, from a lending point of view, my experience is that a lender who sells loans in the secondary market will routinely require all persons liable on the note to be in title.
Transferring ownership due to refinancing
Louise Aron
Attorney at Law
Lakewood Office:
1536 South Ingalls
Lakewood, Colorado 80232 USA
(303) 922 7687
fax (303) 922-1370
Cherry Creek Office:
300 South Jackson #100
Denver, Colorado 80209 USA
(303) 780-7339
Satellite offices:
Boulder - 4450 Arapahoe Avenue, #100
DTC - 4610 South Ulster, #150
A TOLL FREE NUMBER is available to clients outside the Denver metro area.
web site http://effectnet.com/la/
email: [email protected]
LawGuru User
Dear LawGuru User:
You are wise to attend to the details of how a change in ownership of this property will affect you before refinancing.
By law co-borrowers need not jointly own property. However, mortgage companies usually make joint ownership a condition precedent to providing funds.
In order to assist clients in your situation, I draft contracts which outline or limit the rights of each spouse or property owner and/or deeds to be held by the client for recording after the refinancing.
Please let me know if you have further questions.
Thank you for contacting LawGuru.
Sincerely,
Louise Aron
web site http://effectnet.com/la/
email: [email protected]
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